Over at Frum Forum, Howard Foster argues that we should strongly reduce immigration in order to create jobs for native workers. I’m going to put aside the issue of the welfare of immigrants, which to judge from Mr. Foster writing appears to deserve approximately zero consideration, and focus strictly on the question as he frames it: would reducing immigration stimulate native employment? The answer here is a pretty clear no.
For one thing, there the fact that low growth in the number of households has already declined, and with negative consequences. Less household growth means less new houses are needed, and this, in part, explains why the housing sector is failing to contribute to the recovery. This is a problem because housing investment usually is an important component of post-recession economic growth. Current economic activity is based in part on expectations, and the expectation that households would increase more slowly than expected, for instance because we were cracking down on immigration, would make businesses less likely to invest if they expected immigrants to be their customers. In the aggregate, less immigrants mean less households, which means less houses built, which means a slower recover. It’s really foolish to wish to exacerbate the problem of low household growth as Mr. Foster does.
No matter how much Mr. Foster may wish it to be true, there are significant adjustment costs to transitioning to a lower population level, and even a lower population growth rate. I would hope it would be obvious even to him that if we kicked out all 14 million immigrants that came to the United States between 2000 and 2010 that the effect would not be a boost in employment, but a lot of vacant homes, businesses, and schools, and widespread economic problems. After all, if Mr. Foster is right and less competition from other workers is the best thing for people, then why isn’t Detroit an oasis of full employment? After all, the mass exodus of competitors surely leaves more jobs for those left behind?
One thing that always puzzles me about arguments like Mr. Foster’s is why they don’t they apply the same logic to capital and goods markets that they apply to labor markets? If one can boost employment of domestic labor by legally mandating a decrease in imported labor, than surely one can boost production of domestic goods by legally mandating a decrease in imported foreign goods.
Imagine a Mexican immigrant lives in Texas and takes the job of a native Texan in the most literal sense: the American burger flipper is fired from a burger stand and the Mexican is hired to replace him. Now imagine instead that the Mexican man never comes to America but instead works for a burger stand across the border in Juarez Mexico. The burgers he makes are shipped to the U.S., putting the Texas burger flipper’s employer out of business. From the perspective of the employment of the Texan, these two situations are identical.
Why wouldn’t Mr. Foster have us ban the import of the burger if he would have us ban the immigration of the burger flipper? To the extent that these situations are different, the immigration of the Mexican burger flipper is clearly preferable. Since there were likely some other natives employed at the Texas burger stand, native employment is hurt less by immigration of burger flippers than the importation of burgers. Better to keep the stand open and in the United States with some immigrants displacing natives than to have the whole operation move to Mexico.
The foolishness of the argument that we can spur the economy by banning imports should be pretty obvious. If you find yourself tempted to accept the idea that banning immigrants would help native employment, consider the parallels between restricting the flow of labor and the flow of goods and capital.

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Tuesday ~ November 15th, 2011 at 12:30 am
nazgulnarsil
“Country” seems to be a more and more useless abstraction. Liking various cultures aside what do I want as a value producer? Security, contract enforcement, and low taxation. The rest is not all that useful. Others seem to be waking up to this and emigration of value producers and not just riff-raff is on a sharp increase.
Tuesday ~ November 15th, 2011 at 1:27 am
Lord
Well if we could reduce imports without reducing exports then we would be better off at least until the current account returned to balance. Alas, that isn’t too likely.
Tuesday ~ November 15th, 2011 at 12:29 pm
solutions777
Such convoluted logic only proves that the blogger does not understand economics. Also apparent is the bias for more immigrants.
Censorship is evil.
Friday ~ November 18th, 2011 at 10:42 pm
Dave Francis (@lostintaxes)
Enforcement through Attrition? E-Verify to support US workers!
My main contention is to evaporate the fog around the lies, which are spread by Liberals, Democrats and even some Republicans. Both main parties prefer to keep things as they have always been, but the social networks, C-Span cable, Fax, E-Mail and the internet have altered the conception of the communication around the world. Over the years the only way to contact Senators and Congress was through a letter or a phone call. The computer has given us almost instant ‘real-time’ access to the elusive leaders in Washington. So instead of receiving an answer to your requests weeks after a law has been passed, you now have the reliability of having some influence over your US, State or local representatives. The Balance Budget Amendment never passed, so neither party has a commitment to stop the outlandish spending sprees. The larger group of politicians in Washington draft laws to enrich themselves, not the people, which is being investigated. You mustn’t think that nothing can be done—we voted them into office, we can vote them—OUT.
Only the TEA PARTY has a serious concern to reduce the federal government size, trash the tax code, close loopholes for corporate, business and the complicity for campaign donor friends inside the Democrats, GOP, and selling citizens’ continuously to the highest bidder to ‘K’ street lobbyists. Our only hope is the TEA PARTY, the ordinary American who can rid us of the corruption in the center of government. Just in the last few days we have heard of ‘Insider Trading’ that is allowed for politicians, but outsiders—THE AMERICAN PEOPLE—will go to prison. Only the TEA PARTY can save America now from the decay that is deeply ingrained in Washington.
Lamar Smith’s, a Texas lawmaker was inspired to produce this piece of legislation, goes to the heart of the matter of immigration and its rapidly rising cost. Those businesses of every type have encouraged poverty from every country–to settle here. Unlike most developed countries illegal immigration is a felony, not a civil infraction as in the good old USA. They have caused this incredulous infection that has contaminated our country with a large chunk of discretionary spending, to support these people. That has affected each of the 50 states financial shortfalls for decades. The major majority realize now that we cannot keep accepting people who are desperate, and placing a strain of financial weight on public schools for their children, the hospitals and an overpopulated penal system.
No finger is pointed at any person’s race, color or spiritual dedication, but anybody who has arrived here through any means, with intent to grab as much free welfare assistance as possible. A MANDATORY E-VERIFY SYSTEM will deliver relief from illegal aliens in the labor market. Revised E-Verify is already expelling foreigners who are stealing jobs from the unfortunate 22 million workers, even though it has the Liberal press who denies its effectiveness. Unbelievable the main culprit that had an obligation to the American people through many changes of administration, have failed to close all loopholes in stringent enforcement. Not even the border fence has been completed–or any serious laws to hold businesses accountable for the damage caused by illegal alien labor. Going to Google you can help determine the terrible toll place on this nation, by out-of-control immigration. Our strength is in our votes and you can contact your political leader through NumbersUSA.
You can read all about corruption at Judicial Watch website, you can either contact ICE website, to report illegal aliens working. You can even join a local TEA PARTY online. You have to wonder who Obama and the Department of Justice as our Public Servants are obligated too. It certainly not to assist the majority of the citizens and legal residents, as the President and the judicial branch have been asserting their power on Arizona, Alabama, Georgia, South Carolina and now Indiana. All these states want to do is inhibit economic aliens from going there and ransacking the welfare and public entitlement programs.
As of November 18, Rep. Joe Heck (R-Nev.) and Rep. Alan Nunnelee (R-Miss.) is now co-sponsoring House Judiciary Chairman Lamar Smith’s Legal Workforce Act (H.R.2885.) adding to the astounding 12 more lawmakers in the last two weeks, bringing the number of co-sponsors to 65, who wanting this law to reach the floor of the house of Representatives.
The Washington switchboard at 202-224-3121 is already inundated with infuriated callers, who are justifiably contacting not only the House ‘Ways and Means Committee led by Majority Speak John Boehner (R-OH) on this import legislation. Whoever answers the phone explain to them you are a voter and want your policymaker to sponsor this bill. You can also insisting that all of Congress, on both sides of the chamber co-sponsor this beneficial Bill. Every TEA PARTY member throughout America should join in communicating with every state and US Senator and Congressman.
Once we get illegal immigration under control, then ‘THE People’ can enact a standardized ‘Guest Worker’ program’ for agriculture, but with good regulated pay, conditions that must be observed. Not the incorrigible way some farmers are treating their charges today.
Attn: We must all be watchful of illegal aliens voting in the future election cycle.
Saturday ~ November 19th, 2011 at 3:59 pm
More Reasons to Support Increased Immigration | On Hyperborea: ideas from the north
[...] of goods and capital. If immigrants take jobs away from natives and somehow burden economic growth, wouldn’t the same logic apply to goods and capital? Obviously goods and capital don’t go through often difficult [...]